Home – New Forums Money matters Registering a business – for the look of authority. Good idea?

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  • #988209
    happyez
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    Hi all

    I am going to be launching a schlew of professional reference guides which have all the hallmarks of taking off in the next 12 months.

    I have been a sole trader since 2009, and fronting up as a sole trader to professionals in industry bodies and major corporations, with no track record/history and no sales history means I will have a big obstacle to overcome (however, the product will erase most of those worries instantly, but its like working the engine quite hard, and the less effort the better!).

    But the thing I am missing here presently is ‘authority’. In FSer’s opinions, will being a Manager/CEO/other_title of a Pty Ltd company help me, or will it be little more than negligable?

    If I answer my own question, I would say it would help quite a bit. Since I am dealing with companies only, and the product is totally in the B2B realm, being up a business level will help immensely. I know there are major tax and accounting responsibilities to fulfill, but the turnover looks quite substantial, so that shouldn’t be a problem.

    In case I have answered my own question wrongly, what do others think?

    Cheers all
    Eric

    #1166167
    Greg_M
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    I’m not so sure about the “authority” angle, but I do think having a P/L business can help in some circumstances.

    Some Government authorities, and bigger businesses don’t or won’t deal directly with an individual.

    I’m in a different field, but for e.g. … most council tenders for procurement, won’t even put you on the “list” unless you have P/L. Bigger businesses I’ve worked with prefer it too.

    I think it has more to do with avoiding the risks of dealing with an individual legally, than anything else. None of the ones I’ve dealt with seems to care that the P/L was a one man band.

    Cheers

    #1166168
    LucasArthur
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    Just to add a separate thought, the P/L is still seen as someone taking there ideas or business plans more serious than a sole trader.. I know this is not the case, always, although some larger firms feel they are ‘lowering’ there standards if dealing with a non PTY Ltd..

    There is also the additional thinking that if you are a sole trader, you may and i say may not have the appropriate insurances or indemnities should something go wrong in the services or whilst the services are provided.

    For a mere $600ish, or less, you could potentially create a company and have the pty ltd tag to show your seriousness (would not say authority as your title doesnt give authority your skill set should) of your belief in your ideas and business.

    Yes, i know the $$ quoted above are merely to set up the company, please note there will be additional ongoing fees to maintain said company although it is not excessive in light of you knowing your reference guides will become common place and successful to boot..

    Let us know how you go.

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1166169
    happyez
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    SimplyReplica, post: 192401 wrote:
    Just to add a separate thought, the P/L is still seen as someone taking there ideas or business plans more serious than a sole trader..

    would not say authority as your title doesnt give authority your skill set should
    excessive in light of you knowing your reference guides will become common place and successful to boot..

    Hi Jason

    Thanks for writing hey. That’s not a bad with the ‘serious’ angle, and makes sense.

    You mentioned about a title giving/not giving authority. What did you mean by that exactly? I have no idea what you would call yourself once you are in charge of a P/L, possibly ‘Director’?

    Cheers there!
    Eric

    #1166170
    LucasArthur
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    happyez, post: 192417 wrote:
    You mentioned about a title giving/not giving authority. What did you mean by that exactly? I have no idea what you would call yourself once you are in charge of a P/L, possibly ‘Director’?

    Hi Eric,

    Was just referring to the fact that a ‘title’ as such, i feel, would not necessarily bring you more authority. It is your ability to persuade the audience/potential client with your knowledge and product and ‘authority’ on the subject matter that will win you business. Not that you are a Director, etc etc…

    As for your reference about what you would call yourself, i know my beliefs may be outdated or overruled, although i think titles are not worth the paper they are written on… Maybe in the high sycophantic world of corporate ladders it may have some bearing although i do not feel it would benefit an operation with one person unless you felt more comfortable calling yourself a Managing Director or whatever… This is just a personal opinion though..

    Dont let a title concern you, if your product is good you could just be “Eric” from XWY Pty Ltd. Then if someone asks more, you could put your chest out and say “well its my company, and we focus on the product not the labels behind them”.. that may have been a bit much, but you get the gist..

    Be good mate

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1166171
    rob.aspirus
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    Hmmm – the post is entilted “Registering a business ….”, but the context is more about “Which business structure?”

    Let’s look at ‘registering’: If you use a business name other than your name or a compilation of your name (eg. Joe Bloggs. or Mr J Bloggs, etc), then you MUST register the business name.

    The business structure you choose is primarily about what is relevant and sensible in relation to liability and protection of your personal assets.

    Now, about your title – “the look of authority”: You can give yourself an appropriate title even if your business is called “Joe Bloggs”. It’s hard to ‘brand’ your business unless you give it a more descriptive name, though. You can be ‘Manager’, ‘Senior Consultant’, ‘General Manager’, or similar – without having to form a Company.

    Having said that, the advice already given here is quite true – however, it is about sensible business structure, not ‘authority’.

    So, before you invest in forming a company, discuss it with an accountant or appropriate business advisor – and do it for the right reasons, not just for appearance and authority.

    #1166172
    happyez
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    rob.aspirus, post: 192428 wrote:
    Hmmm – the post is entilted “Registering a business ….”, but the context is more about “Which business structure?”
    …. do it for the right reasons, not just for appearance and authority.

    Hi Rob

    Business Name is fine, been a sole trader for a few years now.

    What I mean by authority is that I rock up to a large multinational asking them to advertise in my publication. As mentioned above, which I hadn’t thought of, but makes sense, is that many businesses and councils won’t deal with sole traders – too risky. For that reason alone, registering a company seems like its the way to go.

    I’ll be seeing an accountant (I don’t know one yet, I’ll trawl through the FS archives and see an accountant that is recommended highly) about which structure would work best – Unit Trusts, share types etc.

    The reason I want to have a look of authority, which I don’t have yet, is that this is new and I am asking companies to invest thousands into ads and hundreds into purchasing a book, so I will need all the trust-building ways I can find. Not personal authority in a title (although I asked that, its not the most important thing).

    Thanks for all your replies, is helping me come straight into what I need to do
    Eric

    #1166173
    happyez
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    SimplyReplica, post: 192422 wrote:
    Hi Eric,

    Was just referring to the fact that a ‘title’ as such, i feel, would not necessarily bring you more authority. It is your ability to persuade the audience/potential client with your knowledge and product and ‘authority’ on the subject matter that will win you business. Not that you are a Director, etc etc…

    Jason

    Hi Jason, thanks for the suggestions.

    I agree about titles, and they aren’t the most important aspect I will pay attention to. If that is the main objection I get, my sales job will be eeeeeasy!! :)

    Cheers there
    Eric

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